UK’s FTSE 100 slipped on Monday, with mining stocks leading declines after weak economic data from top commodities consumer China knocked down metal prices, while energy stocks lost ground tracking a dip in crude prices.
The blue-chip FTSE 100 lost 0.1%, while the more domestically-focussed FTSE 250 midcap index also fell 0.1%.
China’s economy grew at a frail pace in the second quarter, with the post-COVID momentum faltering rapidly and raising pressure on policymakers to deliver more stimulus to shore up activity.
FTSE 100 closes lower at the end of best week in three months
Industrial metal miners dipped 1.9% as prices of most base metals came under pressure.
Heavyweight energy stocks fell 0.4% on lower oil prices.
Focus now shifts to UK consumer prices data due Wednesday, after data last week showed U.S. inflation easing.
“Investors are right to focus on (UK) inflation in the short-term,” said Alan Kinnaird, business development manager at Walker Crips Investment Management.
“But longer-term, the figures in America are really interesting at the moment, especially this disinflation pattern that’s popped up.”
UK’s inflation stood at an eye-watering level of 8.7% year-over-year in May.
An industry survey showed asking prices for residential homes in Britain fell in July as rising mortgage costs and increasing buyer affordability constraints prompted sellers to temper their price expectations.
Housing related stocks such as real estate and homebuilders fell nearly 0.5% each.
The commodity-heavy FTSE 100 has fallen over 7% from its record high levels hit in February as prices of oil and metals wavered on demand concerns in China.
Among individual stocks, Gresham House soared 55.5% after U.S.-based investment firm Searchlight Capital Partners said it will buy the alternative asset manager for 469.8 million pounds ($614.9 million).
Johnson Matthey gained 0.9% after Deutsche Bank upgraded the chemicals maker to “buy” from “hold.”
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